Recently proposed capacity-based damage indices and parametric models for capacity curves are applied to frame steel buildings located in soft soils of the Mexico City. To do that, the seismic performance of 2D models of low-, mid- and high-rise buildings is assessed. Deterministic and probabilistic nonlinear static and incremental dynamic analyses are implemented. Monte Carlo simulations and the Latin Hypercube sampling technique are used. Seismic actions are selected among accelerograms recorded in the study area. Spectral matching techniques are applied, so that the acceleration time histories have a predefined mean response spectrum and controlled error. The design spectrum of the Mexican seismic code for the zone is used as target spectrum. The well-known Park and Ang damage index allows calibrating the capacity-based damage index. Both damage indices take into account the contribution to damage of the stiffness degradation and of the energy dissipation. Damage states and fragility curves are also obtained and discussed in detail. The results reveal the versatility, robustness and reliability of the parametric model for capacity curves, which allow modelling the nonlinear part of the capacity curves by the cumulative integral of a cumulative lognormal function. However, these new capacitybased damage index and capacity models have been tested for and applied to 2D frame buildings only; they have not been applied to 3D building models yet. The Park and Ang and the capacity-based damage indices show that for the analysed buildings, the contribution to damage of the stiffness degradation is in the range 66–77% and that of energy loss is in the range 29–34%. The lowest contribution of energy dissipation (29%) is found for the low-rise, more rigid, building. The energy contribution would raise with the ductility of the building and with the duration of the strong ground motion. High-rise frame buildings in soft soils of Mexico City show the worst performance so that the use of adequate braced frames to control the displacements could be recommended.